Empresa Generadora de Electricidad Itabo S.A. Nov 10

AbstractA diversified portfolio of dollar-denominated long-term energy sales contracts; and Half ownership by The AES Corp., a strong power plant operator. Association with a highly subsidized distribution sector; Low average collections from distributors; Operation in the Dominican Republic's weak regulatory framework; and The electric sector's dependence on a developing, externally affected Dominican economy. Standard & Poor's Ratings Services' ratings on Empresa Generadora de Electricidad Itabo S.A. reflect the company's deteriorating financial profile, partly a result of a higher-cost structure associated with a fixed-price coal supply contract expiring in 2011, and lower revenues from a decline in electricity sales prices. The rating also incorporates our opinion that there is a low likelihood of timely and sufficient extraordinary support from the Dominican...

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